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HDB Financial IPO anchor book has attracted INR 3,369 crore, just ahead of its highly anticipated INR 12,500 crore Initial Public Offering (IPO). The allocation was made on 24 June 2025 at the upper end of the price band, INR 740 per share, as expected by the market for the HDFC Bank subsidiary.
The IPO opens for public subscription today, 25 June 2025, and will close on 27 June 2025. The IPO includes a fresh issue of INR 2,500 crore and an offer-for-sale (OFS) of INR 10,000 crore by parent company HDFC Bank, which holds a 94.36% stake in HDB Financial Services.
Strong Participation Across the Board
The anchor book saw overwhelming interest from both domestic and global institutional investors, showcasing the credibility HDBFS has built over the years. A total of 141 anchor investors were allotted 4,55,27,026 equity shares, valuing the anchor round at INR 3,368.99 crore.
Among the largest allocations:
- Life Insurance Corporation of India (LIC) secured 6.53% of the anchor portion with an investment of approximately INR 220 crore.
- Baillie Gifford Pacific Fund received 3.09%, translating to over INR 104 crore.
- Government Pension Fund Global (Norway) got 2.97%, invested around INR 100 crore.
- Global players like BlackRock, Goldman Sachs, Abu Dhabi Investment Authority (ADIA), Fidelity, Templeton, and Allianz Global Investors were the key international participants.
- Other big names were Morgan Stanley, Jefferies, HSBC, SBI Investment Opportunities Fund, and Kotak Mahindra Mutual Fund.
From the Indian mutual fund industry, 22 domestic mutual funds applied through 65 schemes, collectively securing 1.93 crore shares, representing 42.59% of the anchor portion. Notable participants included:
- ICICI Prudential Mutual Fund
- SBI Mutual Fund
- Axis Mutual Fund
- Aditya Birla Sun Life AMC
- Kotak Mahindra AMC
- DSP Mutual Fund
- UTI Mutual Fund
- HSBC Mutual Fund
- Canara Robeco, Mirae Asset, Bandhan AMC, Edelweiss AMC, Motilal Oswal, and others
HDB Financial IPO Fundamentals: Strength in Stability
HDB Financial’s IPO is priced in the range of INR 700 to INR 740 per share, with a lot size of 20 shares. At the upper band, the company is valued at around INR 61,400 crore, translating to a post-issue price-to-book value of 3.7x FY25 estimates, considered reasonable by most market analysts.
As per the Red Herring Prospectus, the net proceeds from the fresh issue will be used to augment Tier-I capital to fuel growth in consumer, SME, and enterprise finance segments.
The IPO is managed by a consortium of 12 top book-running lead managers, including JM Financial, Goldman Sachs India, HSBC, Nomura, Morgan Stanley, Jefferies India, and Motilal Oswal, to reach out to maximum investors.
HDB Financial’s INR 12,500 crore IPO is priced at INR 740 per share, valuing it at INR 61,300 crore — a 39% discount to MUFG’s 2024 offer, valuing it at INR 86,000 crore. This valuation gap presents a rare opportunity for investors to enter at a price below what global institutions were willing to pay.
HDB Financial IPO Anchor Book: Impressive Financial Performance
As of 31 March 2025, HDBFS reported:
- A loan book of INR 1.06 lakh crore
- Net profit of INR 2,176 crore for FY25, up from INR 1,359 crore in FY24
- A healthy asset quality with Gross NPA at 2.49% and Net NPA at 1.38%
- Over 1,700 branches in 1,200 cities, serving 1.9 crore customers
HDB Financial has grown to be one of India’s largest retail-focused NBFCs with a diversified product suite of personal loans, gold loans, business loans, and vehicle finance.
Analyst Sentiment: Thumbs-Up All Around
Brokerage houses are broadly optimistic:
- SBI Securities and Anand Rathi have issued “Subscribe” ratings, citing HDB Financial’s strong fundamentals, HDFC Bank’s backing, and long-term profitability potential.
- Mirae Asset Capital Markets notes that while the issue is “fully priced,” it still offers significant upside due to brand strength, growth visibility, and improving ROE (~15%).
With a Grey Market Premium (GMP) of INR 75, shares are expected to list around INR 815, potentially delivering a 10% listing gain to early subscribers.
Conclusion: Confidence, Capital & Continuity
HDB Financial anchor book success marks a significant endorsement of its business model, asset quality, and governance standards. As the IPO opens for public participation, both institutional and retail investors have an opportunity to invest in a mature, fast-growing NBFC that combines HDFC Bank’s trust with its operational independence.
With a solid balance sheet, diversified loan portfolio, and a forward-looking growth strategy, HDB Financial Services is poised to unlock new value on the Indian bourses starting 02 July 2025, when it is expected to debut on the NSE and BSE.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription, stay tuned to IPO Central.